Merchant services statements and pricing

ABSTRACT

A method for obtaining credit card pricing for a merchant includes obtaining a merchant category classification (MCC) code. A sales volume, a number of credit card transactions, an average dollar amount of the credit card transactions and a percentage of credit card transactions that are keyed are obtained. The MCC code, the average dollar amount of the of credit card transactions processed and the percentage of credit card transactions that are keyed are compared with corresponding data from a database of merchant credit card transactions. A matched merchant is identified whose transaction profile closely matches a combination of the MCC code, the average dollar amount of the credit card transactions processed and the percentage of credit card transactions that are keyed. Credit card processing pricing information for the matched merchant is obtained from the database. The credit card processing pricing information is used to calculate credit card processing pricing for the matched merchant.

BACKGROUND

Merchant services provides a way for merchants to process credit cardtransactions from customers. The merchant services can include equipmentto process the credit card transactions, for example point of saledevices, and an account at a merchant services provider. A merchantservices provider can implement processing of a credit card transactionand can set rates and fees for a merchant who uses the merchant servicesprovider.

Various factors can determine how merchant services providers assigntheir rates and fees. In addition, rates and fees can vary amongdifferent merchant services providers. Merchants who use merchantservices providers may periodically evaluate the rates and fees they payand may inquire about changing their merchant services provider toobtain better rates.

SUMMARY

Embodiments of the disclosure are directed to a method implemented on anelectronic computing device for determining credit card processingpricing for a merchant, comprising: on the electronic computing device,obtaining a merchant category classification (MCC) code for themerchant; obtaining a sales volume of credit card transactions processedby the merchant; obtaining a number of credit card transactionsprocessed by the merchant; obtaining an average dollar amount of thecredit card transactions processed by the merchant; obtaining apercentage of credit card transactions that are keyed, wherein creditcard transactions that are keyed comprise credit card transactions inwhich one or more of a credit card account number or credit cardsecurity number are manually received; comparing the MCC code, theaverage dollar amount of the of credit card transactions processed andthe percentage of credit card transactions that are keyed withcorresponding data from a database of merchant credit card transactions;identifying a matched merchant from the database whose transactionprofile closely matches a combination of the MCC code, the averagedollar amount of the credit card transactions processed, and thepercentage of credit card transactions that are keyed; obtaining fromthe database, credit card processing pricing information for the matchedmerchant; and using the credit card processing pricing information tocalculate credit card processing pricing for the matched merchant.

In another aspect, a method implemented on an electronic computingdevice for determining credit card processing pricing for a merchantcomprises: on the electronic computing device, receiving a scanned imageof a merchant services statement of the merchant; extracting from thescanned image a merchant category classification (MCC) code for themerchant; extracting from the scanned image a number of transactionsprocessed by the merchant; extracting from the scanned image a salesvolume of credit card transactions processed by the merchant; obtaininga percentage of the credit card transactions that are keyedtransactions, wherein one or more of a credit card number used in atransaction or a security code associated with the credit card aremanually received; comparing the MCC code, the number of credit cardtransactions processed, the sales volume of credit card transactionsprocessed and the percentage of credit card transactions that are keyedtransactions with corresponding data from a database of merchant creditcard transactions; identifying a matched merchant from the databasewhose transaction profile closely matches a combination of the MCC code,the number of credit card transactions processed, the sales volume ofcredit card transactions processed and the percentage of credit cardtransactions that are keyed transactions; and obtaining from thedatabase, credit card processing pricing for the matched merchant; andassigning as credit card processing pricing for the merchant the creditcard processing pricing for the matched merchant.

In yet another aspect, an electronic computing device comprises: aprocessing unit; and system memory, the system memory includinginstructions which, when executed by the processing unit, cause theelectronic computing device to: receive a scanned image of a merchantservices statement of a merchant; extract from the scanned image amerchant category classification (MCC) code for the merchant; extractfrom the scanned image a sales volume of credit card transactionsprocessed by the merchant; extract from the scanned image a number ofcredit card transactions processed by the merchant; calculate an averagedollar amount of the credit card transactions processed by the merchant;identify from the scanned image a format used on the merchant servicesstatement; obtain a percentage of the sales volume of credit cardtransactions that are keyed transactions, wherein one or more of acredit card account number used in a transaction or a security codeassociated with the credit card are manually received; use a structuredquery language (SQL) command to query a database for a combination ofthe MCC code, the sales volume of credit card transactions processed bythe merchant and the sales volume of credit card transactions that arekeyed transactions; obtain a response from the database of a databaserecord that closely matches the combination of the MCC code, the averagedollar amount of the of credit card transactions processes by themerchant and the sales volume of credit card transactions that are keyedtransactions; obtain a format of a merchant services statement from thedatabase record; compare the identified format used on the merchantservices statement with the format of the merchant services statementobtained from the database record; identify a matched merchant from thedatabase whose transaction profile closely matches a combination of theMCC code, the average dollar amount of the credit card transactionsprocessed, the percentage of credit card transactions that are keyed andthe identified format; obtain from the database, an interchange cost forthe matched merchant; and assigning as credit card processing pricingfor the merchant a sum of the interchange cost for the matched merchantand one more additional costs, including a profit margin cost.

The details of one or more techniques are set forth in the accompanyingdrawings and the description below. Other features, objects, andadvantages of these techniques will be apparent from the description,drawings, and claims.

DESCRIPTION OF THE DRAWINGS

FIG. 1 shows an example system that supports an analysis of merchantservice statements and merchant services provider pricing.

FIG. 2 shows example modules of the merchant services statement engineof FIG. 1.

FIG. 3 shows an example user interface screen that can be used toprovide data for merchant services.

FIG. 4 shows an example method for determining merchant servicespricing.

FIG. 5 shows another example method for determining merchant servicespricing.

FIG. 6 shows a schematic diagram of an example merchant servicesstatement.

FIG. 7 shows example physical components of the organization servercomputing device of the system of FIG. 1.

DETAILED DESCRIPTION

The present disclosure is directed to systems and methods for processingmerchant services statements to determine pricing for merchant servicesproviders. The systems and methods can permit a merchant servicesstatement to be analyzed and, as a result of the analysis, permitmerchant services provider pricing to be determined.

As used in this disclosure, a merchant services provider is aninstitution that processes credit card transactions for a merchant. Asdiscussed in more detail later herein, various fees are associated witha credit card transaction. For each transaction processed, the merchantservices provider deposits into the merchant account a dollar amountequal to a dollar amount of an item purchased during the transaction,less the various fees. Typically, deposits for merchant transactions aremade periodically, for example at the end of a business day.

In one example implementation, information from a merchant servicesstatement can be manually provided, by one of: a meeting with afinancial services representative, a telephone call with the financialservices representative or via a website. In an alternativeimplementation, the information from the merchant services statement canbe automatically obtained, either via a barcode on the merchant servicesstatement or by scanning the merchant services statement and obtainingthe information. In an example implementation, the barcode can be aquick response (QR) barcode.

When the information is automatically obtained, the merchant servicesstatement can be scanned and the information can be extracted from ascanned image of the merchant services statement. A software applicationon an electronic computing device, typically a server computer can beused to extract information such as the merchant category classification(MCC) code and sales volume from the merchant services statement. Insome implementations, the software application can use artificialintelligence (AI). AI can be helpful in identifying a format of themerchant services statement, using the identified format to know whereto look for specific information on the merchant services statement andto automatically extract the specific information from the scanned imageof the merchant services statement.

Information from the merchant services statement that can be obtainedcan include items such as the MCC code, a number of credit cardtransactions processed at the merchant and a sales volume for the creditcard transactions processed. This information can be used to obtaincredit card processing pricing for the merchant. When the MCC codecannot be obtained from the merchant services statement, the MCC codecan be provided by the merchant.

Other information that can determine credit card processing pricing forthe merchant can include a percent of credit card transactions that arekeyed transactions, a percent of credit card transactions that arebusiness to business (B2B) transactions and a zip code of the merchant.The percent of credit card transactions that are keyed transactionscomprises a percent of credit card transactions for which the creditcard number and/or security code are communicated by telephone to acustomer service representative or manually entered via a website.Credit card transactions that are keyed transactions typically have ahigher processing charge than credit card transactions in which a creditcard is swiped at a point of sales (POS) terminal. In someimplementations, the percent of credit card transactions that are keyedtransactions can be obtained from the merchant services statement. Inother implementations, the percent of credit card transactions that arekeyed transactions are provided by the merchant. In some implementationsthat MCC code for the merchant can be derived from the percent of creditcard transactions that are keyed and a percent of transactions that areB2B transactions.

The MCC code can indicate a type of establishment at which the creditcard is used and, based on the type of establishment and an amount ofthe transaction, a determination can be made as to a type of credit cardthat is used—for example a standard credit card or a premium creditcard. The determination can be made by comparing the MCC code with otherMCC codes for other credit card transactions stored in database 114 anddetermining types of credit cards used for MCC codes that are similar.

The MCC code is a four digit integer that can be organized by categoriessuch as airlines, automobile/vehicle rentals, hotels and motels, retailstores, clothing stores, restaurants and other categories. For example,a fast food restaurant has an MCC code of 5814 and a restaurant otherthan fast food (for example a sit-down restaurant) has an MCC code of5812.

A fee structure for processing credit card transactions includes severalcomponent fees. One component fee is known as an interchange fee.Another component fee is typically a payment network fee. A thirdcomponent is an organization fee paid to the merchant services providerthat can include a profit margin for the merchant services provider.

The interchange fee is a fee paid by merchants to credit card issuers(for example banks) for accepting credit cards. The interchange fee istypically around 80 percent of the total fees for a credit cardtransaction. However, the interchange fee can vary based on the creditcard issuer and the type of credit card being used. Premium credit cardsthat offer higher rewards generally have a higher interchange fee than abasic credit card that may offer standard rewards or no rewards. Forexample, a Visa Signature Preferred credit card typically has a higherinterchange fee than a basic Visa card.

The payment network fee is an assessment fee paid to a credit cardassociation, for example Visa, MasterCard, Discover or American Express.The payment network fee, typically a small component of the total creditcard fees, is charged by the credit card association on everytransaction involving one of their credit cards.

The fee paid to the merchant services provider is a fee paid by themerchant for the services that the merchant services provider providesto the merchant. Such services include handling the processing of creditcard transactions for the merchant, and depositing funds for thetransactions (less fees) into the merchant account on a timely basis. Inone example, the funds less fees can be deposited on a daily basis. Inanother example, a gross amount of the credit card transactions can bedeposited on a daily basis and all processing fees related to creditcard transactions for a month can be deposited on a monthly basis,typically on the following month. Other examples are possible.

Merchant services statements can be unbundled or bundled. Unbundledmerchant services statements show the actual interchange cost. Forunbundled merchant services statements, an actual interchange cost thatthe merchant paid during a month can be extracted from the merchantservices statement. Bundled merchant services statements do not provideinterchange data for the credit cards that a merchant accepted during amonth. Bundled statements only provide either a flat rate, for example2.8%, or the bundled statements may group transactions in categories toshow tiered pricing, for example qualified, mid-qualified ornon-qualified. For bundled statements, only an estimate of theinterchange costs can be obtained.

The analysis of a merchant services statement to determine merchantservices provider pricing can be complex because of a wide range offormats used on the statements and a wide range of credit card types andidentifiers. For example, as stated earlier herein, interchange fees canvary based on a type of credit card. However, identifiers of the creditcard type can be cryptic on a merchant services statement and difficultto identify. In addition, merchant services provider pricing can varybetween different merchant services providers.

To address these issues, the systems and methods stores data for aplurality of merchant services statements. When a specific merchantservices statement is analyzed, the specific merchant services statementis compared with the plurality of merchant services statements todetermine which of the plurality of merchant services statements thespecific merchant services statement is most similar. Once a comparisonis made, a pricing profile of the matched merchant services statementcan be applied to the specific merchant services statement.

Comparisons can be made because although there are a plurality ofmerchant services statement formats, a plurality of MCC codes and aplurality of merchant services providers, these combinations aresomewhat limited. For example, there may only be a relatively smallsubset of MCC codes that are used most often, a relatively small numberof statement formats that are used most often and a relatively smallnumber of merchant services providers that are used most often. Inaddition, the MCC codes used can be mapped to a particular type ofcredit card used and therefore to a particular interchange fee. Forexample, a profile can indicate that for a certain MCC code (for examplecorresponding to a luxury hotel), a high-end rewards card is typicallyused.

The systems and methods also permits a prospective customer to upload amerchant services statement from a smartphone to a website of a merchantservices provider. The merchant services provider can then analyze datain the merchant services statement and, using the comparisons discussedabove, provide a price for providing merchant services to theprospective customer.

The systems and methods can also be applied to implementations otherthan merchant services statements. One example application in which thesystems and methods can be implemented is treasury management. In atreasury management business, financial institution can process checks,money transfers and other transactions. Many of these transactions canbe made electronically via an automated payment house (ACH) network.Using the systems and methods, treasury management statements for afinancial institution can be analyzed and pricing information forhandling the treasury management business can be provided to aprospective customer.

Other example applications in which the systems and methods can beapplied can include financial spreading and supporting loan documents,for example involving mortgages. Financial spreading can compriseextracting certain data points from business financial statements,either by an employee of a financial organization or via a softwareprogram. Costs for various customers can be stored and compare with datafor a prospective customer. Using comparisons, pricing information forhandling this type of business can be provided to prospective customers.

The systems and methods disclosed herein are directed to a computertechnology that stores merchant services data, including pricinginformation, for a plurality of merchants for which a merchant servicesprovider organization provides merchant services. The systems andmethods permit a prospective customer of the organization to have itsmerchant services statement(s) analyzed and to efficiently provide anestimate of a cost of merchant services for the prospective customer. Byusing machine learning and artificial intelligence to automaticallyanalyze a merchant services statement of the prospective customer, thesystems and methods provide the pricing information faster and moreefficiently than current methods of analyzing the merchant servicesstatement of the prospective customer.

FIG. 1 shows an example system 100 that can support an analysis ofmerchant service statements. System 100 includes a customer electroniccomputing device 102, a scanning device 104, a merchant servicesstatement 106, a network 108, an organization server computing device110 and a database 114. The organization server computing device 110includes a merchant services statement engine 112. More, fewer ordifferent components can be used.

The example customer electronic computing device 102 is an electroniccomputing device of a merchant who is a prospective customer of anorganization that can provide merchant services. The electroniccomputing device can be any one of a desktop computer, laptop computer,tablet computer or smartphone. The prospective customer can providemerchant services statement information to the organization via theelectronic computing device.

The example scanning device 104 is an electronic scanning device thatcan scan a merchant services statement 106 and send a scanned image ofmerchant services statement 106 to customer electronic computing device102. In some implementations, customer electronic computing device 102can send the scanned image to organization server computing device 110.In other implementations, a software application on customer electroniccomputing device 102 can extract merchant services statement informationfrom the scanned image and send the merchant services statementinformation to organization server computing device 110.

The example network 108 is a computer network and can be any type ofwireless network, wired network and cellular network, including theInternet. Customer electronic computing device 102 can communicate withorganization server computing device 110 using network 108.

The example organization server computing device 110 is a servercomputing device of an organization that can provide merchant servicesto the prospective customer. In some implementations, the organizationcan be a financial institution such as a bank. In other implementations,the organization can be another type of financial institution such as aninvestment firm or a mortgage company.

The example merchant services statement engine 112 receives and analyzesdata from a merchant services statement and uses the data to provide anestimate to the merchant for merchant services provided by theorganization. In some implementations, the data is manually provided bythe merchant, either through a telephone call or an in-person meetingwith a representative of the organization or via a website of theorganization. In other implementations, the data can be automaticallyobtained via scanning a merchant services statement from the merchant'scurrent merchant services provider. Merchant services statement engine112 uses data items such as MCC code, sales volume, number oftransactions and percent of transactions keyed to calculate a pricingrate for the merchant for merchant services provided by theorganization. Merchant services statement engine 112 can calculate anaverage dollar amount of the credit card transactions processed from thesales volume and number of transactions.

The example database 114 is a database associated with the organizationof organization server computing device 110. Database 114 can storemerchant services information for a plurality of merchants for which theorganization provides merchant services. The information can include foreach of the plurality of merchants such items as the MCC code of themerchant, the number of transactions, the sales volume of thetransactions, a summary of the type of credit cards used for thetransactions, the percent of transactions that are keyed, the percent oftransactions in which the credit card is swiped, the percent oftransactions that are business to business (B2B) transactions, thepercent of transactions that are business to customer (B2C)transactions, pricing information for the merchant services, and otherinformation. Organization server computing device 110 can store all orparts of the information in database 114. Database 114 can bedistributed over a plurality of databases. Organization server computingdevice 110 can be programmed to query (e.g. using Structured QueryLanguage, SQL) database 114 to obtain the merchant services information.

An example schema including, but not limited to, inventory informationstored in database is shown below:

-   -   Merchant ID—a set or letters, numbers or other symbols that        uniquely identifies a merchant;    -   Merchant Name—a name for the merchant associated with the        merchant ID;    -   Zip code—a postal zip code for the merchant;    -   MCC code—a four digit number identifying a merchant        classification code;    -   MCC description—an alphanumeric description of a merchant type        associated with the MCC code;    -   Total Transactions—a number of credit card transactions        processed at the merchant over a period of time, for example a        month or a year;    -   Total sales volume—a dollar amount of the number of total        transactions processed by the merchant over the period of time;    -   Percent transactions keyed—a number of the total transactions        for which credit card information is manually entered;    -   Percent transactions swiped—a number of the transactions for        which a credit card is swiped at a point of sale device;    -   B2B transactions—a number of transactions with other businesses;    -   B2C transactions—a number of transactions with retail customers;    -   Pointer to credit card types used for the transactions—a volume        summary of credit cards used for the transactions of the period        of time:    -   Credit card A—number of transactions; sales volume of        transactions; percent transactions keyed; % B2B transactions; %        B2C transactions;    -   Credit card B—number of transactions; sales volume of        transactions; percent transactions keyed; % B2B transactions; %        B2C transactions;    -   . . . .    -   Credit card n—number of transactions; sales volume of        transactions; percent transactions keyed; % B2B transactions; %        B2C transactions;    -   Pricing information—a price that the merchant pays for merchant        services provided by the organization, including an interchange        fee, a payment network fee and an organization fee;

The above schema permits the database to be queried for data such dataas MCC code and pricing data per MCC code and sales volume. The schemacan be bundled as a container so that the schema can be easilytransferred, for example between property owners.

As an example, the following messaging format can be used between theorganization server computing device 110 and the database 114 to obtainpricing information for a specific MCC code.

Percent Transactions Number of Total Sales Merchant ID MCC Code KeyedTransactions Volume

As an example, the database 114 can use the following messaging formatin responding to such a request.

Merchant Merchant MCC Percent Number of Total Sales Price for ID NameCode Transactions Transactions Volume Merchant Keyed Services

The response message can include the merchant ID and merchant name ofthe identified merchant in database 114, the MCC code, percenttransactions keyed, the number of transactions, the total sales volumefor this merchant and the price that the merchant pays the organizationfor merchant services. The response message can also include data forone or more additional merchants with the six response fields above. Forexample, if there is more than one merchant having the same MCC code andpercent transactions keyed and sales volume data similar to that in therequest for pricing information, the response message can includesimilar data fields showing pricing data for the additional merchants.More, fewer, or different fields can be used. Other examples arepossible.

FIG. 2 shows example modules of merchant services statement engine 112.The example modules include a user interface module 202, a textprocessing module 204, a barcode processing module 206 and a ratecalculation module 208. More, fewer or different module are possible.

The example user interface module 202 provides a user interface to acustomer at customer electronic computing device 102 from which theprospective customer can manually enter merchant services data. Userinterface module 202 can also display a proposed price to the customerfor merchant services that can be provided by the organization. Userinterface module 202 is described in more detail later herein.

The example text processing module 204 receives a scanned image of amerchant services statement of a prospective customer from customerelectronic computing device 102 and parses and extracts textual andnumerical data from the merchant services statement. Data that can beextracted and parsed can include the MCC code, the number oftransactions, the sales volume and the percent transactions keyed. Otherfields from the merchant services statement can also be extracted andparsed. In some implementations, customer electronic computing device102 can extract and parse data from the scanned image of the merchantservices statement. In this implementation, text processing module 204can receive the parsed and extracted data from customer electroniccomputing device 102.

Text processing module 204 is configured to recognize text on the mostcommon merchant services statement formats. Examples of common merchantservices statement formats include formats from Chase PaymentTech, Bankof America Merchant Services, Vantiv Payment Processing, First DataCredit Card Processing and Global Payments. Based recent data, theseformats are used in statements for about 80 percent of credit cardpurchase transactions.

The example barcode processing module 206 receives a scanned image of abarcode on the merchant services statement from customer electroniccomputing device 102. The barcode can comprise a quick response (QR)code. The barcode can included embedded data for such items as the MCCcode, the percent of keyed transactions, the number of credit cardtransactions and the sales volume. Barcode processing module 206 canprocess the scanned image of the barcode and extract the informationembedded in the barcode.

The example rate calculation module 208 uses the data from the merchantservices statement and data manually entered to determine a price ofmerchant services for the prospective customer that can be provided bythe organization. As discussed, the data can include the MCC code, thenumber of credit card transactions, the sales volume of the credit cardtransactions and the percentage of credit card transactions that arekeyed. In addition, the rate calculation module 208 can calculate anaverage transaction amount from the number of credit card transactionsand the sales volume of these credit card transactions.

The rate calculation module 208 determines the pricing for the merchantservices by comparing the data from the merchant services statement ofthe prospective customer with data from other merchants stored indatabase 114 and building a cost model. Rate calculation module 208 canfirst obtain merchant data from database 114 having the same MCC code ason the merchant services statement of the prospective customer. Ratecalculation module 208 can also determine a format used on the merchantservices statement of the prospective customer and obtain merchantpricing data from database 114 based on the format used.

Rate calculation module 208 can further filter the merchants having thesame MCC code and format used as on the merchant services statement ofthe prospective customer by percent of transactions keyed, sales volumeand average transaction amount. If there is one clear match, pricingdata for the merchant associated with the match can be identified andreturned to the prospective customer at customer electronic computingdevice 102. If there are a plurality of merchants that have closematches, rate calculation module 208 can interpolate prices or otherwisedetermine a proposed price for merchant services for the customer.

In some implementations, rate calculation module 208 can use AI andmachine learning to upload a merchant services statement, accessinformation regarding the prospective customer stored online or receiveneeded information from the prospective customer and automaticallygenerate a proposed price for merchant services for the prospectivecustomer. For example, the AI and/or machine learning can recognize asales volume and a type of business and can access a credit history andbusiness documents on file for the prospective customer. Based on theseand other data, the rate calculation module 208 can offer a proposedprice for merchant services to the prospective customer. For businesseswithout a merchant services statement, the rate calculation module 208can provide example costs for various monthly sales volume levels.

The proposed price for merchant services for the prospective customercan comprise an interchange fee, a network fee and an organization fee.The organization fee can comprise a cost for the organization to processtransactions for the customer plus a profit margin for the organizationthat can be added on.

FIG. 3 shows an example user interface 300 for credit card transactionsvia which a prospective customer at customer electronic computing device102 can provide merchant services statement data to the organization.User interface 300 can be rendered on a display screen of customerelectronic computing device 102 when the prospective customer logs intoto a website of the organization, for example a website hosted byorganization server computing device 110.

User interface 300 includes fields 302, 304 and 306 via which theprospective customer can enter a monthly time period, an MCC code and anMCC description, respectively. As shown in FIG. 3 and example timeperiod 302 is October 2017, an example MCC code 304 is 5732 and adescription 306 for the MCC code is electronic sales. The description306 field can be automatically populated based on the MCC code.

User interface 300 also includes an example table 308 via which theprospective customer can enter data regarding credit card transactionsprocessed during October 2017. Table 308 includes columns for card type310, number of transactions 312, sales volume 314 and percent keyed 316.Table 308 also includes rows for Visa 318, Master Card 320, DiscoverCard 324, AMEX 326 and total 328. As an example from table 308, for themonth of October 2017, there were 40 Visa credit card transactions for atotal sales volume of $20,000.00 and 50% of these transactions werekeyed. As another example from table 308, for the month of October 2017,there were 5 AMEX (American Express) transactions for a total salesvolume of $5,000.00 and 15% of these transactions were keyed. Ratecalculation module 208 can use data entered into user interface 300 tocompare the merchant transaction data with data for other merchantsstored in database 114. Based on the comparison, rate calculation module208 can calculate merchant services pricing for the prospectivecustomer, as discussed earlier herein.

FIG. 4 shows a flowchart for an example method 400 for determiningmerchant services pricing for a prospective customer of an organizationthat provides merchant account services. For method 400, informationregarding the merchant transactions for the prospective customer areprovided manually by the prospective customer, via one of a personalmeeting with a representative of the organization, a telephone call withthe representative of the organization or via entering the informationon a website of the organization.

At operation 402, a merchant category classification code (MCC) for thebusiness of the prospective customer is obtained from the prospectivecustomer. The MCC code is a four digit number that identifies the typeof business. The MCC code is important for determining pricing for theprospective customer because some fees, for example the interchange feecan be directly or indirectly dependent on the type of business of theprospective customer. The MCC code can be indirectly related to theexchange fee because certain MCC codes (for example for upscale retailstores) can indicate that a high-end credit card may be used at that theupscale retail store, and use of the high-end credit card may beassociated with a high interchange fee.

At operation 404, a sales volume of credit card transactions for theprospective customer is obtained. The sales volume can include abreakdown of credit card transactions for different types of creditcards, such as Visa, Master Card and American Express. The sales volumeof credit card transactions is typically represents a dollar amount theof credit card transactions processed at retail stores of theprospective customer during a month, although other time intervals canbe used. An average dollar amount of the credit card transactions can becalculated from the sales volume.

At operation 406, a percentage of credit card transactions that arekeyed for the prospective customer are obtained. The credit cardtransactions that are keyed are those in which either the credit cardaccount number, the three-digit security code associated with the creditcard are either entered on an online website of the prospective customeror are provided over the telephone when a purchase is made. Thepercentage of credit card transactions that are keyed and a percentageof credit card transactions that occur as result of swiping a creditcard at a POS terminal in a retail store of the prospective customerequals 100 percent.

At operation 408, the MCC code, the volume of transactions and thepercentage of credit card transactions that are keyed are compared withmerchant data stored on a database of the organization, for exampledatabase 114. The database can store transaction data from merchants whoare currently or who have been customers of the organization. Thetransaction data can include the MCC code of the merchant, transactiondata for each type of credit card used, the percent of credit cardtransactions that are keyed and pricing data for each merchant formerchant services provided by the organization. The pricing data cancomprise a single price for the merchant services or can comprise apricing schedule based on a volume of transactions.

At operation 410, a best match is found for the prospective customer onthe database. The best match typically comprises a merchant record onthe database for which the MCC code is the same as for the prospectivecustomer and for which a combination of the volume of transactions andpercentage transactions that are keyed are closest to those of theprospective customer. A match of the volume of transactions typicallyoccurs after the MCC code match, followed by a match of the percentageof transactions that are keyed.

At operation 412, pricing data is obtained from the database for themerchant with the best match to the prospective customer.

At operation 414, the pricing data with the best match is then assignedto the prospective customer. This pricing data can then be communicatedto the prospective customer as a price that the prospective customerwould pay if the prospective customer used the merchant services of theorganization.

FIG. 5 shows a flowchart for another example method 500 for determiningmerchant services pricing for a prospective customer of an organizationthat provides merchant account services. For method 500, informationregarding the merchant transactions for the prospective customer areprovided, at least in part, as a result of scanning an merchant servicesstatement from a current merchant services provider of the prospectivecustomer.

At operation 502, a scanned image of the merchant services statement isobtained at organization server computing device 110. For example,merchant services statement 106 can be scanned by scanning device 104that is connected to or is a part of customer electronic computingdevice 102. The scanned image is then sent from customer electroniccomputing device 102 to organization server computing device 110.

At operation 504, a format used in merchant services statement 106 isidentified from the scanned image. Software on organization servercomputing device 110 can be used to identify the scanned image. In someimplementations, the software comprises an artificial intelligence (AI)software application. Most merchant services statements use one of asmall number (typically 5-10) of formats available for merchant servicesstatements. The software on organization server computing device 110 canparse the scanned image of merchant services statement 106 and determinewhether the format used on merchant services statement 106 correspondsto one of the typically used formats.

At operation 506, the merchant category classification (MCC) code isextracted from the scanned image of merchant services statement 106. Thesoftware application can make use to the identified format of merchantservices statement 106 to determine where the MCC code is on merchantservices statement 106.

At operation 508, the number of credit card transactions processed isextracted from merchant services statement 106. The number representsthe credit card transactions processed by the merchant during a timeperiod, typically one month. In some implementations, in addition to thetotal number of transactions processed by the merchant during the timeperiod, separate totals are extracted for each type of credit cardprocessed, for example Visa or American Express.

At operation 510, the volume of credit card transactions is extractedfrom merchant services statement 106. The volume represents the creditcard transactions processed by the merchant during a time period,typically one month. In some implementations, in addition to the totalvolume of transactions processed by the merchant during the time period,separate totals are extracted for each type of credit card processed,for example Visa or American Express.

At operation 512, the number of credit card transactions and the volumeof the credit card transactions is used to calculate an average dollaramount of the credit card transactions. In some implementations, theaverage dollar amount of the credit card transactions can be obtaineddirectly from a merchant services statement.

At operation 514, a percentage of credit card transactions that arekeyed are obtained. The credit card transactions that are keyed arethose in which either the credit card account number, the three-digitsecurity code associated with the credit card are either entered on anonline website of the prospective customer or are provided over thetelephone when a purchase is made.

At operation 516, the MCC code, the number of transactions, the averagedollar amount of the credit card transactions and the percentage ofcredit card transactions that are keyed are compared with merchant datastored on database 114. Database can store transaction data frommerchants who are currently or who have been customers of theorganization. The transaction data can include the MCC code of themerchant, transaction data for each type of credit card used, thepercent of credit card transactions that are keyed and pricing data foreach merchant for merchant services provided by the organization. Thepricing data can comprise a single price for the merchant services orcan comprise a pricing schedule based on a volume of transactions.

At operation 518, a best match is found for the prospective customer onthe database. The best match typically comprises a merchant record onthe database for which the MCC code is the same as for the prospectivecustomer and for which a combination of the number of transactions, thesales volume of transactions and percentage transactions that are keyedare closest to those of the prospective customer. A match of the volumeof transactions typically occurs after the MCC code match, followed by amatch of the percentage of transactions that are keyed.

At operation 520, pricing data is obtained from the database for themerchant with the best match to the prospective customer.

At operation 522, the pricing data with the best match is then assignedto the prospective customer. This pricing data can then be communicatedto the prospective customer as a price that the prospective customerwould pay if the prospective customer used the merchant services of theorganization.

FIG. 6 shows a schematic diagram of an example merchant servicesstatement 600. The example merchant services statement 600 includes foursections, an overall summary 602 for a statement period, a card typesummary 604, a transactions listing 606 and a fees summary 608. In anactual merchant services statement, more, fewer of different sectionsand entries can be used. For example, not all merchants accept debit/ATMtransactions or AMEX transactions. In addition, other merchant servicesstatements can have different formats than example merchant servicesstatement 600.

The example overall summary 602 shows a total dollar amount (salesvolume) of credit card transactions submitted during the statementperiod, any adjustments, such due to returns, canceled transactions,etc., any fees charged and a total dollar amount processed. As shown inoverall summary 602, for the statement period shown, $23,283.64 ofcredit card statements were submitted for processing, $921.10 of feeswere charged and there were no adjustments. The total dollar amountprocessed during the payment period was $22,362.54 ($23,283.64-$921.10).

The example card type summary 604 lists categories of credit card typesprocessed during the payment period, the number of credit cardtransactions for each credit card type, the total sales volume dollaramount of these credit card transactions and the average dollar amountof the credit card transactions. The average amount is obtained bydividing the total amount by the number of credit card transactions. Asshown in card type summary 604, during the statement period there were157 Master Card transactions, for a total dollar amount of $3,890.03 andan average dollar amount per credit card transaction of $24.78. Therewere also 520 Visa credit card transactions for a total dollar amount of$9,874.78 and an average dollar amount per credit card transaction of$18.99, 66 American Express credit card transactions for a total dollaramount of $1,483,25 and an average dollar amount per credit cardtransaction of $22.47 and 295 Visa credit card transactions for a totaldollar amount of $8,035.58 and an average dollar amount per credit cardtransaction of $27.24, resulting in a total of 1,038 credit cardtransactions during the payment period for a total dollar amount of$23,283.64.

The example transactions listing 606 lists details of each credit cardtransaction processed during the statement period. The details shown intransactions listing 606 include the data of the credit cardtransaction, the amount submitted, any fees associated with thetransaction and the dollar amount processed. A textual description ofeach transaction is also provided. Other information is possible for thetransactions listing 606.

The example fees summary 608 provides a summary of all fees chargedduring the statement period for processing the credit card transactions.The fees charged can include interchange charges, payment network feesand organization fees, as discussed earlier herein. As shown in feessummary 608, the total fees of $921.10 during the statement periodincludes $736.88 of interchange charges, $46.06 of payment network feesand $138.16 of organization fees.

As illustrated in the example of FIG. 7, organization server computingdevice 110 includes at least one central processing unit (“CPU”) 702,also referred to as a processor, a system memory 708, and a system bus722 that couples the system memory 708 to the CPU 702. The system memory708 includes a random access memory (“RAM”) 710 and a read-only memory(“ROM”) 712. A basic input/output system that contains the basicroutines that help to transfer information between elements within theorganization server computing device 110, such as during startup, isstored in the ROM 712. The organization server computing device 110further includes a mass storage device 714. The mass storage device 714is able to store software instructions and data. Some or all of thecomponents of the organization server computing device 110 can also beincluded in customer electronic computing device 102.

The mass storage device 714 is connected to the CPU 702 through a massstorage controller (not shown) connected to the system bus 722. The massstorage device 714 and its associated computer-readable data storagemedia provide non-volatile, non-transitory storage for the organizationserver computing device 110. Although the description ofcomputer-readable data storage media contained herein refers to a massstorage device, such as a hard disk or solid state disk, it should beappreciated by those skilled in the art that computer-readable datastorage media can be any available non-transitory, physical device orarticle of manufacture from which the central display station can readdata and/or instructions.

Computer-readable data storage media include volatile and non-volatile,removable and non-removable media implemented in any method ortechnology for storage of information such as computer-readable softwareinstructions, data structures, program modules or other data. Exampletypes of computer-readable data storage media include, but are notlimited to, RAM, ROM, EPROM, EEPROM, flash memory or other solid statememory technology, CD-ROMs, digital versatile discs (“DVDs”), otheroptical storage media, magnetic cassettes, magnetic tape, magnetic diskstorage or other magnetic storage devices, or any other medium which canbe used to store the desired information and which can be accessed bythe organization server computing device 110.

According to various embodiments of the invention, the organizationserver computing device 110 may operate in a networked environment usinglogical connections to remote network devices through the network 108,such as a wireless network, the Internet, or another type of network.The organization server computing device 110 may connect to the network108 through a network interface unit 704 connected to the system bus722. It should be appreciated that the network interface unit 704 mayalso be utilized to connect to other types of networks and remotecomputing systems. The organization server computing device 110 alsoincludes an input/output controller 706 for receiving and processinginput from a number of other devices, including a touch user interfacedisplay screen, or another type of input device. Similarly, theinput/output controller 706 may provide output to a touch user interfacedisplay screen or other type of output device.

As mentioned briefly above, the mass storage device 714 and the RAM 710of the organization server computing device 110 can store softwareinstructions and data. The software instructions include an operatingsystem 718 suitable for controlling the operation of the organizationserver computing device 110. The mass storage device 714 and/or the RAM710 also store software instructions and software applications 716, thatwhen executed by the CPU 702, cause the organization server computingdevice 110 to provide the functionality of the organization servercomputing device 110 discussed in this document. For example, the massstorage device 714 and/or the RAM 710 can store software instructionsthat, when executed by the CPU 702, cause the organization servercomputing device 110 to display received data on the display screen ofthe organization server computing device 110.

Although various embodiments are described herein, those of ordinaryskill in the art will understand that many modifications may be madethereto within the scope of the present disclosure. Accordingly, it isnot intended that the scope of the disclosure in any way be limited bythe examples provided.

What is claimed is:
 1. A method implemented on an electronic computingdevice for determining credit card processing pricing for a merchant,the method comprising: on the electronic computing device, obtaining amerchant category classification (MCC) code for the merchant; receivinga scanned image of a merchant services statement; analyzing the scannedimage of the merchant services statement via a machine learningalgorithm to automatically determine a format of the merchant servicesstatement from a plurality of formats; obtaining, using the machinelearning algorithm, a sales volume of credit card transactions processedby the merchant, a number of credit card transactions processed by themerchant, an average dollar amount of the credit card transactionsprocessed by the merchant, and a percentage of credit card transactionsthat are keyed, wherein credit card transactions that are keyed comprisecredit card transactions in which one or more of a credit card accountnumber or credit card security number are manually received; identifyinga plurality of merchants whose MCC code matches the MCC code of themerchant; comparing the average dollar amount of the credit cardtransactions processed, the percentage of credit card transactions thatare keyed, and the format used on the merchant services statement withcorresponding data from the database of merchants whose MCC code matchesthe MCC code of the merchant comprising merchant credit cardtransactions; identifying a matched merchant from the database whosetransaction profile closely matches a combination of the average dollaramount of the credit card transactions processed and the percentage ofcredit card transactions that are keyed; obtaining from the database,credit card processing pricing information including an interchange fee,a payment network fee, and an organization fee, for the matchedmerchant; using the credit card processing pricing information tocalculate credit card processing pricing for the matched merchant; anddisplaying, on the electronic computing device, a result including atleast one of an interchange fee, a network fee, and an organization feefor the matched merchant.
 2. The method of claim 1, wherein the creditcard pricing information comprises an interchange cost to the merchantand wherein the credit card processing pricing to the merchant comprisesthe interchange cost plus one or more additional costs, including aprofit margin cost.
 3. The method of claim 1, further comprising usingthe machine learning algorithm to identify a format used on the merchantservices statement.
 4. The method of claim 3, further comprising:comparing the identified format along with the MCC code and the salesvolume of credit card transactions processed with the corresponding datafrom the database of merchant credit card transactions; and identifyingthe matched merchant from the database whose transaction profile closelymatches a combination of the MCC code, the sales volume of credit cardtransactions processed and the identified format used on the merchantservices statement.
 5. The method of claim 2, further comprisingextracting the MCC code from a QR code on the merchant servicesstatement.
 6. The method of claim 1, further comprising: receiving ascanned image of the merchant services statement of the merchant; andextracting the MCC code and the sales volume of credit card transactionsprocessed from a barcode on the merchant services statement.
 7. Themethod of claim 6, further comprising extracting pricing rates from thebarcode.
 8. The method of claim 1, further comprising querying thedatabase, using a structured query language (SQL) command, for acombination of the MCC code and the total sales volume of credit cardsprocessed by the merchant.
 9. The method of claim 1, further comprising:receiving a zip code of the merchant; and using the zip code along withthe average dollar of the credit card transactions and percentage ofcredit card transactions that are keyed to identify the matched merchantfrom the database.
 10. The method of claim 9, further comprising:obtaining a percentage of credit card transactions for the merchant thatare business to business (B2B) transactions; and using the percentage ofcredit card transactions that are B2B transactions along with the salesvolume of credit card transactions processed by the merchant and thepercentage of credit card transactions processed that are keyedtransactions to identify the matched merchant from the database.
 11. Amethod implemented on an electronic computing device for determiningcredit card processing pricing for a merchant, the method comprising: onthe electronic computing device, receiving a scanned image of a merchantservices statement of the merchant; analyzing the scanned image of themerchant services statement via a machine learning algorithm toautomatically determine a format of the merchant services statement froma plurality of formats; extracting from the scanned image, via themachine learning algorithm, a merchant category classification (MCC)code for the merchant; extracting from the scanned image, via themachine learning algorithm, a number of transactions processed by themerchant; extracting from the scanned image, via the machine learningalgorithm, a sales volume of credit card transactions processed by themerchant; obtaining a percentage of the credit card transactions thatare keyed transactions, wherein one or more of a credit card number usedin a transaction or a security code associated with the credit card aremanually received; identifying a plurality of merchants whose MCC codematches the MCC code of the merchant; comparing the number of creditcard transactions processed, the sales volume of credit cardtransactions processed and the percentage of credit card transactionsthat are keyed transactions with corresponding data from a database ofmerchants whose MCC code matches the MCC code of the merchant comprisingmerchant credit card transactions; identifying a matched merchant fromthe database whose transaction profile closely matches a combination ofthe number of credit card transactions processed, the sales volume ofcredit card transactions processed and the percentage of credit cardtransactions that are keyed transactions; obtaining from the database,credit card processing pricing information including an interchange fee,a payment network fee, and an organization fee, for the matchedmerchant; assigning as credit card processing pricing for the merchantthe credit card processing pricing for the matched merchant; anddisplaying, on the electronic computing device, a result including thecredit card processing pricing for the matched merchant.
 12. The methodof claim 11, further comprising: identifying a format used on themerchant services statement; comparing the identified format along withthe number of credit card transactions processed, the sales volume ofcredit card transactions processed and the percentage of credit cardtransactions that are keyed transactions with the corresponding datafrom the database of merchant credit card transactions; and identifyingthe matched merchant from the database whose transaction profile closelymatches a combination of the number of credit card transactionsprocessed, the sales volume of credit card transactions processed, thepercentage of credit card transactions that are keyed transactions andthe identified format used on the merchant services statement.
 13. Themethod of claim 11, further comprising extracting from the scanned imagea sales volume of credit card transactions processed for each of aplurality of credit card types.
 14. The method of claim 13, whereincomparing the sales volume of credit card transactions processed withcorresponding data from the database of merchant credit cardtransactions comprises comparing the sales volume of credit cardtransactions processed for each of the credit card types withcorresponding data from the database of merchant credit cardtransactions.
 15. The method of claim 11, wherein the scanned image ofthe merchant services statement includes a quick response (QR) barcodeand the MCC code is extracted from the QR barcode.
 16. An electroniccomputing device comprises: a processor; and system memory, the systemmemory including instructions which, when executed by the processor,cause the electronic computing device to: receive a scanned image of amerchant services statement of a merchant; analyze the scanned image ofthe merchant services statement via a machine learning algorithm toautomatically determine a format of the merchant services statement froma plurality of formats; extract from the scanned image, via the machinelearning algorithm, a merchant category classification (MCC) code forthe merchant; extract from the scanned image, via the machine learningalgorithm, a sales volume of credit card transactions processed by themerchant; extract from the scanned image, via the machine learningalgorithm, a number of credit card transactions processed by themerchant; obtain an average dollar amount of the credit cardtransactions processed by the merchant; identify from the scanned imagea format used on the merchant services statement; obtain a percentage ofthe sales volume of credit card transactions that are keyedtransactions, wherein one or more of a credit card account number usedin a transaction or a security code associated with the credit card aremanually received; identify a plurality of merchants whose MCC codematches the MCC code of the merchant; use a structured query language(SQL) command to query a database of a plurality of merchants whose MCCcode matches the MCC code of the merchant for a combination of the salesvolume of credit card transactions processed by the merchant and thesales volume of credit card transactions that are keyed transactions;obtain a response from the database of a database record that closelymatches the combination of the average dollar amount of the credit cardtransactions processes by the merchant and the sales volume of creditcard transactions that are keyed transactions; obtain a format of amerchant services statement from the database record; compare theidentified format used on the merchant services statement with theformat of the merchant services statement obtained from the databaserecord; identify a matched merchant from the database whose transactionprofile closely matches a combination of the average dollar amount ofthe credit card transactions processed, the percentage of credit cardtransactions that are keyed and the identified format; obtain from thedatabase, an interchange cost for the matched merchant; and assign, ascredit card processing pricing for the merchant, a sum of theinterchange cost for the matched merchant and one more additional costs,including a profit margin cost.